THE EMERGENCE OF THE SOCIAL
MEDIA EMPOWERED CONSUMER
Clodagh O'Brien
The emergence of user-generated content (UGC) via social media channels
from the Web 2.0 era has had a dramatic impact on the current commercial
environment. Businesses can no longer simply publish content they v^ish
potential customers to see; the social media landscape has instigated a
power shift from the business towards the consumer. The qualitative
research in this study investigates how these platforms have impacted on
traditional relationship marketing concepts and how this has affected
consumer expectations of the conventional business-consumer relationship.
Building upon traditional relationship marketing literature, and
incorporating areas of relevance such as word of mouth and consumer
empowerment, the research highlights areas of potential for development in
theory and practice as a result of social media empo>verment.
Introduction
Social media isn't a fad, it's a fundamental shift in
the way we communicate.
(Qualman, 2010)
Communication is truly changing as a result of
social media utilisation and thus the dynamics of
human relationships take on a new perspective.
The rules of relationship marketing bave been
redefined. Indeed social media platforms allow
consumers to form a sort of tribal community
around a product or brand. However, businesses
that adopt social media as a strategy must accept
tbat they are losing an element of control to tbe
consumer. For many businesses today social media
is their largest web presence, overtaking tbeir
company websites and email programmes (Neff,
2010). Thus social media has mutated how businesses interact and communicate with tbeir customers as well as how they establish and implement tbeir customer relationship management
(CRM) policies. Tbe main difference between traditional CRM and social CRM is tbat the latter
involves the customer proactively. The customer is
empowered and improving tbe customer experience is a central goal (Morgan, 2010).
Social media channels represent a huge opportunity for marketers in terms of word of mouth
referrals. It was found that 47% of under 35 year
olds in the UK post comments or online reviews
(Mintel, 2010), wbicb will in turn impact significantly on the opinion of potential customers
searching for product information via search
engines. Tbe internet and social media remove tbe
barriers that existed in tbe past in traditional word
of mouth sucb as location, time and access.
However, the social media revolution brings a new
set of concerns and challenges relating to user privacy and the impact of user generated content. In
fact Google's CEO, Eric Schmidt, warns tbat
younger generations today do not comprehend
tbe impact that the internet can have on tbeir
futures, suggesting that tbey will bave to take
extreme measures such as cbanging their names to
escape their digital past in order to secure a job
(Hanlon, 2010). Internet savvy generations today
must realise that it is nearly impossible to fully
erase something from tbe World Wide Web, and
ñarthermore employers now scour the web for
information on potential candidates (Hanlon,
2010).
Literature Review^
Due to the infancy of social media utilisation for
businesses, most literature in the area of social
media concerning relationsbip marketing is of
very recent publication or in the process of being
published. Furtbermore there is a lack of literature
on tbe topic and tbus tbe autbor focused on the
application of traditional CRM, and relationship
marketing strategies in tbe context of social media
witb other areas of relevance to the topic, sucb as
consumer empowerment and word of mouth marketing.
Tbe internet has become 'an enabler of global
marketplace', overcoming issues such as time and
distance and empowering consumers to communicate witb peers, quickly form and change tbeir
own opinions and ultimately to define brands by
themselves (Pires et al., 2006: 937). Tbe digital era
has redefined contemporary consumption, trans© Mercury Digital Publications
The Emergence of the Social Media Empowered Consumer
forming consumers from their former passive roles
into an active group (Law et al., 2003). This
change is a direct restilt of the Web 2.0 era in
whicb internet savvy consumers have unlimited
access to information as well as the ability to
interact freely with other consumers as well as
brands and businesses. The recently coined 'Web
2.0' is a concept that describes the evolution of
the internet from a static environment to an interactive community (Brennan, 2010). It views the
internet as a space where web content and applications are constantly modified and adapted by
users through collaboration and participation
(Kaplan and Haenlein, 2010).
Daugherty et al. (2008: 2) define user-generated
content (UGC) as 'media content created or produced by the general public rather than by paid
professionals and primarily distributed on the
internet'. An increasing number of businesses
today are actively utilising social media and UGC
to encourage consumers to share their experiences
online with other users, a trend which is dramatically redefining the relationship between a business and its consumers (Harris and Rae, 2009).
Vitberg (2010: 42) opines tbat social media has
led to an age of consumer-to-consumer driven
information creating awareness and credibility
and establishing relationships with prospective
customers.
Social media has truly altered the consumer landscape, described by Smith (2009: 559) as a 'revolution in user generated content, global community
and tbe publishing of consumer opinion'. It is
about engaging with current customers, potential
customers and critics at every level of modern
social communication (Fisher, 2009).
Motivations to Contribute on Social
Media Platforms
Daugherty et al. (2008) measure three functional
perspectives in online contribution; (i) the ego
defensive relating to self importance and self
esteem, (2) the value-expressive function, relating
to respondents' agreement with content in terms
of their own moral beliefs and finally (3) tbe social
function which relates to the act of forming
friendships and bonds and belonging to a community. These factors determine attitude formation which in turn influences an individual's
behaviour (Daugherty et al., 2008).
The study found the ego defensive to be of particular importance, whereby individuals will try to
protect themselves from external threats and eliminate self doubts, while the social function foimd
that consumers create content to increase their
sense of self importance and to connect with
others (Daugherty et al., 2008: 16). As human
beings we have a psychological need to be our
own individual; however, we also desire the feeling
of belonging to a larger social set (Qualman,
2010). Indeed, Maslow's bierarchy of needs states
that after our basic human needs we desire to be
accepted, which is one of the reasons that social
media has been so successful: 'humans are social
animals by nature' (Qualman, 2010: 4).
Relationship Marketing
Although the concept of relationship marketing is
widely accepted and researched, there is no commonly accepted definition, making application of
these strategies potentially problematic for marketers. Berry (1983, cited in Berry, 1995: 236) was
one of tbe first to attempt to define the concept,
describing relationship marketing as 'attracting,
maintaining
and
enhancing
relationships'.
Similarly Gronroos (1994: 9) describes tbe emergence of relationship marketing as a 'paradigm
shift' that seeks to 'establisb, maintain, and
enhance relationships with customers and other
partners, at a profit, so that the objectives of the
parties involved are met.' It is about tbe relationship between the consumer and a business creating added value for both parties on top of the
value of the products or services exchanged
(Gronroos, 2004).
Relationship marketing is a concept that is
applicable inside a firm as well as outside; it is 'a
process, a chain of activities' (Gummesson, 1994:
17). The concept relies on the success of three
vital areas: an interaction process, a plantied
communication process that supports and
enhances relationships and finally the creation of
value (Gronroos, 2004). Evidently social media
provides an ideal channel for all three elements.
Indeed, Szmigin et al. (2005: 480) believe that
the 'network society' offers an area of huge
potential to marketers to develop their relationships with consumers. This is because relationship marketing is 'underpinned through shared
communication' (Harridge-March and Quinton,
2009: 175).
Irish Marketing Review Volume 21 Number i & 2 2011
Gronroos (1995: 253) defines the aim of transaction marketing as 'to get customers', whereas the
aim of relationship marketing is to both 'get and
keep customers'. Traditionally marketing focused
on attaining customers through a single sale; however, this transactional approach has changed significantly in recent years to accommodate a relationship marketing approach. Indeed Buttle
(1996: 206) describes a transaction approach as 'a
form of hit and run marketing': it does not serve
the interests of either tbe customer or the business
as it is costly and sbort term.
Tbe management of an interaction process is tbe
core of relationship marketing
(Gronroos, 2004:103).
Gronroos (2004) contends that in order for a firm
to develop a successful relationship with its customers, value enhancing interactions must be present. Although a firm can plan the communication with its consumers, it does not necessarily
result in a dialogue. A firm can initiate the dialogue route; however, interactions are necessary
for monologues to grow into dialogues (Gronroos,
2004). Conversation can act as a catalyst in the
development of bonds between participants in an
online community environment (Szmigin et al.,
2005). According to Gronroos (2004), a firm
applying the relationship marketing concept
should show a genuine interest in the needs and
value systems of its customers and should show
consumers that their feedback is both appreciated
and utilised for company
improvements.
Relationships are interactive by nature in that each
party can impact upon that relationship: 'neither
party acts entirely independently of the other'
(Szmigin et al., 2005: 481). Social media is an ideal
platform for the initiation of interaction with consumers and a space where firms can respond to
and actively apply consumer feedback.
Relationship Marketing and Social
Media
Although consumers may become emotionally
involved witb a brand in traditional relationships,
tbey do not interact with the brand or enter into
dialogues directly and thus the relationship is onedirectional (Szmigin et al., 2005: 481). Social
media eliminates these barriers, allowing brands to
develop stronger bonds with the consumer much
like a human relationship. Indeed, Szmigin et al.
(2005: 481) opine that 'the development of communities, in particular brand communities, has
helped to humanise the technology of the internet'. In this manner online communities are
formed establishing close bonds between users.
Online communities are 'fluid and flexible',
formed as a result of a vast array of interests and
social connections (Zeng et al., 2010: 2).
The existence of a hierarchy among social media
users offers an area of huge potential for marketers. Harridge-March and Quinton (2009) construct a virtual loyalty ladder refiecting tbe original loyalty ladder of tbe relationship marketing
concept, suggesting tbat social network users can
also be stimulated upwards in tbeir loyalty to a
business. The original model consisted of five
areas: suspect, prospect, customer, client and
advocate, with the supporter concept added later
to describe a party that may be interested and may
influence others while not necessarily actually
being a customer (Harridge-March and Quinton,
2009). Similarly the social network loyalty ladder
consists of four levels of which users progress
upwards as their loyalty increases: (i) 'Lurkers'
whereby interested consumers can 'lurk' before
making a contribution, (2) 'Newbys' or 'Tourists'
describe users that have only started to contribute
to a site and have not yet demonstrated signs of
commitment, (3) 'Minglers', adapted from
Kozinets (1996), are users that post but not in a
regular pattern and finally (4) 'Devotees' are members that make regular contributions and develop
ties witb tbe network. Relationships between users
online can result in both social and emotional
bonds which can increase a user's loyalty, as the
more tbey participate the more loyal they become
(Harridge-March and Quinton, 2009). These
bonds are not easily imitated by competitors,
resulting in a sustainable competitive advantage
for a business. Tbe most loyal online consumers
known as the 'Evangelists', corresponding to the
advocates on tbe traditional loyalty ladder of relationship marketing, are the most practical targets
for communications and can influence others in
their purchases (Harridge-Marcb and Quinton,
2009). Consumers further down the ladder can be
targeted in an attempt to move their position
upwards on the social media loyalty ladder.
The customer bonding triangle is a framework
that investigates relationship bonding within an
The Emergence of the Social Media Empowered Consumer
Table 1
CRM to CMR
CUSTOMER RELATIONSHIP MANAGEMENT
CUSTOMER MANAGED RELATIONSHIP
The company is in control
The consumer is in control
Business is better for the company
Business is better for the consumer
Customers tracked by transaction
Focus on understanding unique needs
Treats customers as segments
Treats customers as individuals
Customers made do what you think they want
Customers tell you what they care about
Customers feel stalked
Customers feel empowered
Organised around products and services
Organised around customers
Source: Newell (2003: 8)
online community based on three components:
interactivity, technical infrastructure and service
value (Szmigin et al., 2005: 489). According to the
authors, these three elements embody the needs of
a community and the significance of reliable systems, and acknowledge that participants within
online communities interact with each other as
well as the service provider. There are a number of
managerial implications of the triangle:
•
Businesses can utilise online applications to
create and define relationship strategies
•
Businesses can further develop and improve
existing relationships
•
Communication strategies can be dialogue oriented
•
Dialogue can be improved and communication reach is further expanded
Thus there is clear evidence of an alteration in the
dynamics of the business—consumer relationship.
CRM to CMR
The aim of customer relationship management
(CRM) is to combine relationship marketing
strategies with information technology to create
long term relationships and mutual profit for both
parties involved (Peelen et al., 2009). It is a concept that views the customer as a valuable asset to
a company that should be learned from and managed in such a way that they too feel valued. CRM
utilises information technologies to form a customer database in order to understand the needs
of customers and implement relationship marketing strategies. Ryals and Payne (2001: 3) put it best
when they define CRM as a process that seeks to
'provide a strategic bridge between IT and marketing strategies aimed at building long term relationships and profitability'. However, Newell
(2003) argues that traditional CRM practices are
no longer satisfactory for the empowered consumer and a shift towards customer managed relationships (CMR) is necessary. CMR is 'about creating an experience, personalising the interaction
with individual customers in ways directed by the
customer, and thereby developing relationships'
(Newell, 2003: 7). CMR empowers the consumer
to decide the level of interaction they want, and
how often they communicate with the firm, and
tries to personalise interaction directed by the
consumer, thus developing relationships (Pires et
al., 2006). See Table i.
Socioi CRM
Social CRM is a very recent phenomenon emerging from the ever increasing number of businesses
utilising and incorporating social media platforms
into their marketing strategies. Myron (2010: 4)
defines social CRM as a concept that 'tries to integrate data from the social web with customer relationship efforts'. This contemporary approach to
traditional CRM recognizes the empowerment of
consumers as a result of social media and how consumers have changed in their attitudes, behaviours
and expectations since the emergence of CRM in
the 1990s (Rich, 2010). Social media renders traditional CRM practices inadequate to establish and
build relationships on these emerging channels;
however, social CRM acknowledges the depth of
the relationships formed on these channels (Wang
and Owyang, 2010: 6).
WOMM ond Socioi Medio
Word of mouth marketing (WOMM) is not a
new phenomenon, however, in the age of the
social media consumer it takes on a new dimension and is an area of huge potential for marketers. Defined by Kozinets et al. (2010: 71) as 'the
intentional influencing of consumer-to-consumer
communications by professional marketing techniques', social media is an ideal outlet for the
Irish Marketing Review Volume 21 Number i & 2 2011
application of the concept and is a growing concern. Indeed, Li et al. (2010) describe WOMM as
viral marketing that utilises electronic communications to increase brand messages in a network.
Word of mouth marketing empowers the marketer rather than the consumer as a result of the
transparency, accessibility and breadth of the
internet (Kozinets et al., 2010). It is generally
believed that WOM influence is instigated by a
small number of elite individuals; however. Smith
et al. (2007) discover that influence is something
that all individuals share, stimulated by tbe
human need to be belpfiil by providing advice and
the enjoyment of searching for information.
media platforms and to gauge their level of
empowerment as a result. Dyad and triad focus
groups were utilised, selecting participants that
had already established close social bonds on these
platforms with one other. The depth interview
was utilised by the researcher in order to gain an
industry perspective from professionals working
within the social media landscape on behalf of
businesses. According to Kozinets (2010: 50), in
netnography 'the unit of analysis is the relationship, and what it finds interesting in relationships
are their patterns'. With this in mind, a purely
observational netnograpby was carried out by the
researcher.
Indeed, social media represents a redefinition of
relationships that is rapidly increasing (HarridgeMarch and Quinton, 2009) and as Kozinets (2010:
71) states, 'as markets change, marketing theories
must also change to accommodate them'. The
development of brand relationships through social
experiences and delivering persuasive messages to
content creators and online users represents the
future of marketing (Datigherty et al., 2008).
In both the focus groups and the interviews the
researcher selected a low structure approach, keeping moderation involvement to a minimum and
asking a minimal number of questions. This
approach was selected as the topic is very current
and an issue that the participants encounter on a
daily basis. The researcher felt it more appropriate
to encourage self moderation in order to gain further insight into the attitudes behind the phenomenon of social media.
Exploratory Research and
Methodology
Due to the infancy of research in the area in
Ireland, the researcher adopted a triangulation
approach. This involved examining the topic from
multiple perspectives and different sources within
different time frames and locations in order to
reduce the level of uncertainty in data interpretation. In order to obtain maximum perspectives on
the topic, the researcher utilised depth interviews
with industry professionals, consumer focus groups
and netnography. The researcher carried out an initial focus group consisting of seven respondents
which uncovered some interesting areas of potential interest and inspired the author to initiate an
in-depth investigation of the topic. Consequendy
the author selected two female respondents from
the initial focus group for participation in depth
interviews having demonstrated an interesting perspective on the subject matter. Furthermore two
male respondents were requested to participate in a
dyad focus group as the researcher was eager to
build further on their insights and the dynamics of
their relationship.
Focus groups were used to gain an insight into
how consumers perceive businesses utilising social
Analysis and Discussion
From the data analysed the author concltided that
the relationship between the consumer and a
business has changed significantly as a result of
social media. These platforms facilitate the formation of relationships in terms of customer acquisition, but they are more useful and regarded as
more appropriate for relationship maintenance as
a customer retention platform. Furthermore, the
researcher concluded that social media has indeed
affected consumer expectations of their relationship with a firm. The social media empowered
consumer has emerged.
I. Motivations
Social media utilisation by contemporary consumers has become a daily ritual and a normal
part of their daily routine. Thus it is of critical
importance that businesses today establisb a social
media presence in order to reach their target markets. Furthermore marketers can potentially reach
a wider audience than traditional mediums of
communication as social media is so frequently
viewed and for some consumers the internet has
fully replaced their use of traditional communication mediums.
The Emergence of the Social Media Empowered Consumer
Figure 1
Consumer Contact Cycle
BRAND
BONDING
OCCURS
Users experience a sense of guilt for excessive use
of tbese channels. Social media offers users the
opportunity to interact witb others, but it also
allows the participants to observe individuals on
these platforms witbout revealing their presence.
This anonymous observation bas very negative
connotations for the respondents. These feelings
of guilt allude to a perception of social media as
an addiction tbat must be controlled. Participants
were found to be hugely reliant on social media as
a means for both interacting with social connections and feeling included and aware of wbat their
friends are doing. In tbe network society in wbich
we live today, an individual's sense of belonging
and tbus sense of self are inextricably linked to
social media. Tbis bas created a type of virtual
peer presstixe to consume social media as users
seek out activities that are favourable to others.
Users feel pressurised to interact with businesses by
their online peers very much succumbing to the
social functional aspect of motivation (Daugherty
et al., 2008). The opinion of their online peers is
very important to them. Social media consumers
feel a degree of peer pressure to accept businesses
on these platforms as suggested by a contact. This
offers a business a window of opportunity as there
is a short period of time in which consumers will
embrace a brand name and associate their personal
page with the business. Furtbermore a business can
appeal to the social function motivations of the
consumer by creating and encouraging close social
bonds among participants, increasing their feelings
of belonging. In doing so they form a tight community without which they feel at a loss as well as
increasing their susceptibility to advertising on
these platforms. Daugherty et al. (2008) argued
that marketers can increase brand value by actively
engaging the consumer in media experience
through the provision of an online space where
they can create their own content.
z. Perceptions
Social media is a realm where users are very aware
of tbe fact that business and users within their
community can access their information and view
tbeir actions. This has created a sense of paranoia
and many users are reluctant to accept businesses
as a result. It is in tbe interest of a business to
emphasise on its social media platforms that it
respects tbe privacy of its users and does not distribute tbe personal information of its connections. In this way it increases the sense of trust
between a user and the business and in turn tbis
creates a long term relationsbip. In contrast, consumers do see the personalisation of communications as favourable and are more open to marketing tbat is relevant to their own personal interests
and needs.
3. Consumer Control and Brand Bonding
The researcher found that consumers are more
demanding than ever before and have huge expectations of their relationship with a business. There
is an emerging egocentrism among social media
users as a result of their empowerment and control
in the social media landscape. An inconsistency was
identified between traditional relationship marketing literature and the relationships observed online
as a result of consumer empowerment. This is
because this relationship is now bi-directional and
controlled by the consumer. The social consumer
37
Irish Marketing Review
Figure 2
Volume 21
Number i & 2
2011
Virtual Value Ladder
Loyalty
Recovery
SOCIAL
CRM
WOM
has emerged: cynical, untrusting and highly
demanding. Relationship marketing strategies must
be adapted to accommodate this prevailing trend.
With this in mind the researcher developed the
consumer contact cycle (see Figure i).
The consumer contact cycle reflects the difficulty
a business can have in establishing a relationship
with a consumer on a social media platform.
Initially a business requests tbe friendship of a
user, or a user is suggested to befriend the business by another contact. However the bond can
be severed by eroding consumer trust at each
warning point. This cycle recognises the power of
the consumer in the relationship formation
process and it is not until all four stages are complete that brand bonding occurs and the consumer is considered to be in a relationship with
the business. Evidently it can be a complex task to
secure a relationship with a consumer on social
media, however, when brand bonding takes place
the virtual value of the consumer can prove
invaluable to a business. This is because tbe
brand-consumer bond emulates a real life friendship. By virtue of being an arena originally established to facilitate friendship making among individuals, consumers associate accepting a business
as a contact with a real life friendship. The bond
is therefore strong; however, much like a human
relationship trust is paramount and botb parties
are expected to fulfil their side of the relationship.
Brand bonding also occurs in the sense of community that a business can create surrounding its
brand or product. By appealing to the social function of online users, social media utilises a group
appeal to create a strong social identity, thereby
increasing consumer susceptibility to marketing
as disctissed by Zeng et al. (2010).
It is crucial that businesses allow the consumer to
feel that they are in control of the relationship in
order to gain their trust and ultimately form a
bond, as appearing too desperate for tbeir friendsbip is considered negatively by users. Relationship trust, commitment and the promise concept
(Morgan and Hunt, 1994 and Gronroos, 1994)
are very relevant to the social media landscape
Co-Creotion
but relationship termination costs are unrelated
to this space, which again increases consumer
power.
Although the social media empowered consumer
can be far more high maintenance than traditional
consumers, they can also act as important sources
of information. They can significantly influence
their online communities in their purchasing
habits and can ultimately aid a business in its
product and service designs by assuming the role
of co-creators. This is the highest level of value a
consumer can provide to a business, as once these
steps have been completed a business can partake
in social CRM and truly satisfy its customers creating long term and interactive relationships. This
led the author to create the virtual value of a social
media consumer (see Figure 2).
4. Relationship Recovery and Word of Mouse
Social media brings a new dimension to word of
moutb marketing as consumers were found to be
very trusting of their online community in terms
of intent to purchase. Furthermore consumer consumption patterns can be influenced by their
desire to feel a sense of belonging to their community. Consumers today are more critical and
untrusting of marketing communications than
ever before. Social media allows a business to overcome these issues as unlike other mediums, often
consumers are unaware they are being marketed to
and visibility alone can increase their brand awareness. Furthermore, businesses can target opinion
leaders on these sites in order to influence a wider
audience.
5. An Industry Perspective
With the emergence of social media as an industry in itself in Ireland, the researcher was curious
to unearth whether it is indeed essential to utilise
an expert in order to carry out social media marketing successfully. It was found that there is a
definite perception among industry professionals
and consumers alike that there is a right and a
wrong way to carry out social media for business.
In fact, it can be more damaging to the reputa-
The Emergence of the Social Media Empowered Consumer
tion of a brand to ineffectively utilise these platforms than to abstain altogether. The most significant factors for the consumer are relevance, personalisation and the quantity of communications
they receive.
From a professional point of view, social media
must be regarded as a central element to the marketing mix of a firm and managed by a social
media educated manager on a constant basis. Tbe
researcher recommends that it is essential to
appoint a specific social media marketing manager
within a business to control tbe upkeep of tbe site
and present the 'face' of the company. It is an
avenue that allows the consumer to view a business as a person, to form a real friendship, and
thus it is of great value to a firm. Social media
allows the consumer to see the human side of a
corporation, which increases the likelihood of
recovery in a negative situation, affording a business the opportunity to regain a consumers' trust.
Businesses have to work harder than ever not only
to capture the attention of the consumer but also
to respond to their enquiries that could easily be
found on the corporate website. Businesses have
to serve the social media consumer today or risk
reaping the negative consequences of consumer
backlash in a public space.
Author
Since completing her MSc in Marketing at the
Dublin Institute of Technology in 2010 examining
consumers and social media, Clodagb relocated to
London where she worked for Publicis-owned
firm ZenithOptimedia specialising in search
marketing. She has also begun to expand her work
experience as online editor for Stanfords, the UK's
leading specialist retailer of travel books. Clodagh
has also had a number of articles publisbed during
her time as an intern journalist at The Dubliner
Magazine.
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Concluding Remarks
Although the author does not dispute the contribution of the academic literature concerning the
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